MKTG 6218 Section #1
Marketing in the Service Sector
Week #4 Assignment #1; Case Study #2
Playa Dorada Tennis Club: Expansion Strategy
Submitted by: Jesse Felix
8/14/13

With the guest population at the Playa Dorada Beach & Resort expected to double and the popularity of tennis on the rise, Douglas Hall and the club are faced with a seasonal demand for tennis courts. His dilemma to resolve insufficient capacity issues is coupled with the challenge of making all organizational departments such as marketing, finance, and operations satisfied at the same time. He needs to create an expansion plan to address these concerns during peak seasons as many guests are starting to become discouraged by their inability to play. Since holding off with expansion is not an option Douglas needs to decide whether to build additional courts immediately or look for short term solutions to resolve the inefficient use of space while the long-term expansion plans are being created. Each option comes with a different expense and he needs to calculate the benefits with the risks of each option. In addition to the expansion decision, Douglas also needs to find a way to boost the attractiveness of tennis services in hopes that guests will be interested in purchasing real estate. Since Playa Dorada uses tennis as a key selling feature, it is important that this program is offering the best service available.
While plans to expand the resort and add additional tennis facilities to new areas are being determined, Douglas needs to work on short-term solutions to alleviate the lack of space during peak seasons and playing times. One solution is to build four new courts to the south side location in the available space. This will come at a cost of $192,000 ($48,000 per court) and immediately help create more playing space. With the number of guests expected to double in the coming